MN INSURANCE EXAM PROPERTY AND CASUALTY

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MN INSURANCE EXAM PROPERTY AND CASUALTY

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Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: protects insured form insurers inability to pay claims due to bankruptcy

Answer:

FAIR plan does what?

Question 2: taking an insured from another company

Answer:

Forgery

Question 3: producer

Answer:

me

Question 4: wearing a seat belt

Answer:

retain risk

Question 5: Concealment

Answer:

The withholding of known facts which, if material, can void a contract.

Question 6: payouts to insured are unbalanced

Answer:

Adhesion

Question 7: like a wet floor

Answer:

moral hazard

Question 8: Estoppel

Answer:

A legal principle that stops a party from denying because someone made a mistake?

Question 9: Foreign Insurer

Answer:

insurance company doing business outside its home state

Question 10: Mutual Companies are managed by who?

Answer:

board of directors

Question 11: Loss Ratio

Answer:

loss ratio = incurred losses/earned premiums

Question 12: BOP Standard deductibe

Answer:

$500

Question 13: offering something to help sell

Answer:

misrep

Question 14: declarations, insuring agreements, conditions, exclusions, and definitions (explainations)

Answer:

Express Authority

Question 15: consultant

Answer:

someone who offers advice

Question 16: the one who promises to pay if the promise is broken

Answer:

surplus lines

Question 17: is party to whom the promise is made to

Answer:

with bonds - a surety is..

Question 18: Waiver

Answer:

An intentional, knowing relinquishment of a legal right.

Question 19: (CANHAM)

Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental, Measurable

Answer:

Reinsurance

Question 20: How often can a commissioner examine insurance companies?

Answer:

as often as necessary but MUST be every 5 years

Question 21: poor credit history, high number of claims, property condition

Answer:

When can an insured cancel homeowners insurance?

Question 22: involves both parties being at fault, and plaintiff cannot recover damages if they're greater than the defendants.

Answer:

Fair Credit Reporting Act Question 23: one party has greater power over the other when drafting the contract

Answer:

Doctrine of Reasonable Expectations

Question 24: the insureds premium on losses incurred during the policy period

Answer:

schedule rating

Question 25: Reciprocal

Answer:

members of unincorporated group insure eachother and share losses. (Cover eachother, what goes around like a reciprocal)

Question 26: - printed and published material

• letters

-billboards -radio and TV

Answer:

What is not allowed in advertising

Question 27: needs to give a 20 days notice

Answer:

After 60 days of an effective policy, what can an insurance cancel homeowners insurance because?

Question 28: Excess lines

Answer:

specialized insurance coverages